Crexendo 2025 Q2 Earnings Net Income Surges 109.5%

Crexendo (NASDAQ:CXDO) reported its fiscal 2025 Q2 earnings on August 6, 2025, delivering results that reflect strong revenue growth and improved profitability. The company exceeded expectations with notable year-over-year improvements in both revenue and net income. No forward guidance was provided, aligning with the company’s decision to maintain a measured approach to future expectations.

Revenue

Crexendo’s total revenue for the second quarter of 2025 increased by 13% to $16.6 million compared to $14.7 million in the same period of 2024. The growth was driven primarily by the software solutions segment, which reported a robust 31% year-over-year increase to $7.0 million. Service revenue also saw a modest increase of 4% to $8.4 million, while product revenue experienced a 7% decline to $1.2 million.

Earnings/Net Income

Crexendo’s earnings per share (EPS) more than doubled, rising from $0.02 in 2024 Q2 to $0.04 in 2025 Q2. The company also reported net income of $1.2 million for the quarter, reflecting a 109.5% year-over-year increase from $588,000. The non-GAAP net income further strengthened to $2.9 million, or $0.10 per basic common share and $0.09 per diluted common share, demonstrating the company’s strong underlying profitability.

Price Action

Crexendo’s stock price was mixed in the short term following the earnings report. During the latest trading day, the stock edged down 2.19%, while it managed a 4.12% climb during the most recent full trading week. However, it experienced a decline of 9.64% month-to-date, reflecting ongoing volatility.

Post-Earnings Price Action Review

The historical strategy of buying Crexendo shares after a revenue growth quarter and holding for 30 days proved highly effective over the past three years. This approach generated an overall return of 187.99%, far outpacing the benchmark return of 48.58%, with an excess return of 139.40%. The strategy demonstrated strong risk management, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.58. Despite market fluctuations, the strategy maintained a consistent upward trend, highlighting the potential for continued outperformance when buying Crexendo following strong earnings.

CEO Commentary

Jeff Korn, CEO and Chairman of Crexendo, emphasized the company’s strong performance, noting a 13% year-over-year revenue increase to $16.6 million. The CEO highlighted the strategic importance of the 31% growth in software solutions revenue, which he described as a key competitive advantage. Korn also noted the company’s eight consecutive quarters of GAAP profitability and 27 quarters of non-GAAP net income. With $1.2 million in net income and $2.8 million in adjusted EBITDA, Korn expressed confidence in the company’s scalable business model and its ability to sustain growth through strategic investments in infrastructure and product expansion.

Guidance

Crexendo did not provide forward-looking guidance in its 8-K filing, maintaining a cautious stance on future expectations. This decision suggests a preference for a measured approach as the company continues to focus on long-term strategic initiatives.

Additional News

Crexendo recently announced significant strategic developments aimed at expanding its market presence and strengthening its business model. The company is currently finalizing the closure of its international data centers, a move designed to streamline operations and reduce overhead. Simultaneously, Crexendo is expanding its Oracle Cloud Infrastructure (OCI) presence, signaling a commitment to enhancing its cloud services and infrastructure capabilities.

In terms of financial strategy, the company has maintained cost discipline while expanding its margins. With a strong cash position of $23.5 million and increased cash flow from both operations and financing activities, Crexendo is well-positioned to support continued growth. The company is also focused on accelerating revenue through disciplined, profitable sales initiatives and is actively evaluating strategic acquisitions that could drive value for shareholders.

Additionally, Crexendo is advancing its software platform and exploring AI applications to further differentiate its offerings in the competitive cloud communications market. These efforts are part of the company’s broader strategy to expand its footprint, enhance customer experience, and sustain long-term profitability. Management remains optimistic about the company’s trajectory and the opportunities ahead.